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Three quarters of supporters of the Eurosceptic UK Independence Party said they were unmoved by the speech, and 17 per cent said they were less likely to back the Tories in future. Just 8 per cent of UKIP supporters said they were no more minded to back Mr Cameron.

In a speech at the World Economic Forum in Davos, Mr Cameron sought to reassure business leaders that Britain was not ‘turning our backs on Europe’.

But he told them Europe was being ‘out-competed, out-invested, out-innovated’ and must be transformed into an engine for growth.

The PM discussed the proposals in a 15-minute meeting with German chancellor Angela Merkel, who has indicated she is open to a ‘fair compromise’ with Britain.

Nick Clegg said he was 'none the wiser' about how the PM's plans to claw back powers would actually work

Deputy Prime Minister Nick Clegg said he is ‘still none the wiser about exactly what this great re-negotiation means’.

In an interview with The House magazine, he said: ‘It was a well-crafted speech and obviously very well delivered. But in terms of the content, look, the Conservative Party will obviously ride away with headlines about the referendum today. My own view is that it will be a tactical victory today for a strategic mistake tomorrow.’

Meanwhile, Labour leader Ed Miliband sought to clarify his own position on Europe, after appearing to rule out an in/out referendum in the House of Commons.

He said: ‘I am being clear. I do not think it makes sense, now, to commit to an in/out referendum years ahead.

‘And the reason why it does not make sense is clear from what the priority of the British people is. Their priority is jobs and growth and living standards and I've got to say what I think the right priority is and I do not believe now it makes sense to commit to an in/out referendum.’

In an interview with CNN, Mr Cameron insisted the Government was not planning to ‘storm off’ if its calls for reform were not met.

‘We're not putting a list of demands on the table and saying we'll storm off if we don't get them,’ he said.

‘What we're saying is we should in Europe have changes that will benefit all of the countries of the European Union, but which at the same time will, I think, make Britain more comfortable with her place in the European Union.’